Adorn Furniture Manufactures a Small Table and a Large Table

question 182

Multiple Choice

Adorn Furniture manufactures a small table and a large table.The small table sells for $900,has variable costs of $540 per table,and takes 10 direct labor hours to manufacture.The large table sells for $1500,has variable costs of $980,and takes eight direct labor hours to manufacture.Calculate the contribution margin per direct labor hour for the small table.

• A) $360 per direct labor hour
• B) $52 per direct labor hour
• C) $36 per direct labor hour
• D) $54 per direct labor hour

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Definitions:

Soda Cans

Aluminum containers used for packaging soft drinks and other beverages, chosen for their lightweight, durability, and recyclability.

Marginal Cost

The cost for the creation of one extra unit of a product or service.

Marginal Revenue

The extra revenue obtained by selling an additional unit of a product or service.

Marginal Revenue

The additional income gained from selling one more unit of a product or service.